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25 March 2024

New Zealand's GST and gaming duty measures taking effect for remote sellers

  • A new offshore gaming duty will apply at a rate of 12% to remote gambling supplied to New Zealand residents.
  • New Zealand's goods and services tax (GST) platform economy rules take effect on 1 April 2024.
  • A transitional rule will allow electronic marketplace operators to exclude contracts for short-stay or visitor accommodation entered into before 1 April 2024.
 

On 14 March 2024, the New Zealand Minister of Revenue released an Amendment Paper making changes to the Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Bill. Among other things, the Amendment Paper introduces a new offshore gaming duty and amends New Zealand's GST platform economy provisions.

Offshore gaming duty

An offshore gaming duty will apply to GST-registered persons located outside New Zealand to the extent that they supply remote gambling services to New Zealand residents. The duty will be 12% of the offshore gambling profits made by these persons on or after 1 July 2024.

The offshore gaming duty rules will generally align with the existing rules for GST on remote services. However, the taxable base for the new duty will exclude the amount on which the existing 10% "consumption charges" imposed on sports and racing betting made by New Zealand residents through offshore operators are levied.

GST platform economy

The GST Act 1985 will be amended to include a transitional provision for contracts for short-stay or visitor accommodations that are entered into before 1 April 2024. The provision will allow electronic marketplace operators to exclude these contracts from the GST platform economy rules, which take effect on 1 April 2024. This change addresses the situation in which an accommodation booking was taken before 1 April 2024 without GST being factored into the price, but the supply is not treated as occurring until on or after 1 April 2024.

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Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young Limited (New Zealand), Indirect Tax, Auckland

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

Document ID: 2024-0678

 
 

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